Indian Cashew Nut Export: Grades, Pricing & Buyer Guide

By Aethon Overseas Export Team  |  Published: April 2026  |  Category: Product Guide

India in Global Cashew Trade

India is the world’s largest processor and top exporter of finished cashew kernels. Kerala, Goa, Karnataka, Maharashtra are processing centres.

AFI Grading System

Quality Parameters

• Moisture: max 5% for whole kernels
• Colour: White (W) premium, Scorched (S), Dessert (D)
• Aflatoxin: B1 ≤2 ppb for EU
• Packaging: vacuum-packed tins (2 × 25 lbs/carton)

Beyond Whole Grades: Scorched, Dessert, Pieces, and Split Grades

The AFI grading system covers more than just the W (White Whole) grades. Understanding the full range allows buyers to source cost-effectively for different applications. Scorched grades (SW, SSW) are whole kernels with slight heat discolouration — perfectly suitable for roasting, chocolate coating, or applications where appearance is secondary. Dessert grades (DW) have stronger discolouration but full flavour — ideal for confectionery mixes and nut bars. Pieces grades (LP, SP, BB, SSB) are broken kernels from shelling — they carry all the nutritional value at 30–50% lower cost, making them the preferred choice for cashew butter, baking, and trail mix manufacturers.

Processing: From Raw Nut to Export Kernel

India processes both domestically grown raw cashew nuts (RCN) and imported RCN — primarily from West Africa (Ivory Coast, Tanzania, Guinea-Bissau). The processing involves steaming the raw nut to loosen the shell, mechanical or manual shelling, kernel peeling (removing the testa), grading by size and colour, and finally drying and packing. Indian processing is notable for producing high whole-kernel recovery rates — 22–26 kg of finished kernels per 100kg RCN — due to the skilled manual labour involved in hand-peeling, which reduces breakage compared to fully automated lines.

Buyers should verify whether their supplier uses Indian-grown RCN or imported African nuts — both produce excellent kernels, but origin affects traceability documentation and price volatility. Premium buyers often specify Indian-origin RCN for marketing purposes.

Pricing Factors and Seasonal Dynamics

Cashew kernel prices are determined by raw nut prices (heavily influenced by West African harvest), rupee/dollar exchange rate, processing costs, and global demand cycles. India's domestic harvest (February–May) and West Africa's crop (March–June) together define the year's pricing. Buyers who book during harvest months typically secure 10–15% better pricing than those buying from December-stored stocks. Key price drivers: AFB1 (aflatoxin) rejections in West Africa tighten RCN supply and push kernel prices up; strong demand from China (which imports large volumes of Indian processed kernels) creates price competition for European and US buyers.

Regulatory Compliance: EU and USA Requirements

The EU's strictest cashew requirement is aflatoxin B1 ≤2 ppb (2 µg/kg) and total aflatoxins ≤4 ppb — among the tightest globally. Every shipment to the EU must be accompanied by a NABL-accredited COA confirming aflatoxin levels. The EU also enforces pesticide MRL compliance under Regulation 396/2005. USA FDA requires facility registration of the Indian processing plant and Prior Notice filing. Some US retail chains additionally require BRC, SQF, or FSSC 22000 certification from the processing facility — confirm these requirements before supplier selection. Japan enforces the strictest aflatoxin limits globally (B1 ≤1 ppb), requiring specific testing protocols not always covered by standard Indian lab panels.